KENDRIYA VIDYALAYA SANGATAHAN, MUMBAI REGION

FIRST PRE BOARD – 2022-23

SUBJECT: ACCOUNTANCY(055)
Marking Scheme

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1.

(d) C’s Current A/c Dr 20.000

.
To A’s Capital A/c 15.000
To B’s Capital A/c 5.000
(1)
2. (c) A is true but R is false. (1)

3. (a) Rs 2,000 (1)

OR
(d) Non-Redeemable Debentures

4. (b) Rs. 1,000 (1)

OR
(c) 10% p.a.

5. (b) Rs 20,000 (1)

6. (a) 1,50,000 (1)

OR
(a) 10%

7. (b). 1,200 Shares (1)

8. (c) Nil (1)

OR
(c) Rs. 28,800

9. (a) Shown on Liability side of the Balance Sheet Rs. 1,50,000 (1)

10. (a) Credited to Partners Capital A/c Rs. 40,000 (1)

11. (c) Rs. 48,000 (1)

12. (b) Rs 50,000 (1)
13. (d) Rs.3,00,000 (1)
14. (c) A= Rs.11,600, B= Rs.10,500 and C= Rs.2,700 (1)
OR
 (b). Dr. A Rs. 1,200; Cr. B Rs. 800 and Cr. C Rs. 400

15. (b) Providing for Premium payable on Redemption of Debentures. (1)

16. (b) Loss Rs. 27,000 (1)
17.
Date Particulars LF Dr Amt Cr Amt

2022 Profit and Loss Suspense A/c Dr. 15,000

July 1 To Udit’s Capital A/c 15,000

(Being Udit’s share of profit

allowed till the death of his death)

Workings: Profit % to sales turnover for the year ended 31st

March,2022=1,20,000/10,00,000 X100= 12%
Estimated sales for the year ended 31st March,2022=Rs. 10,00,000+20% of Rs.
10,00,000 = Rs.
12,00,000
Estimated sales till 01st July,2022 = Rs. 12,00,000 x 3/12 = Rs. 3,00,000
Profit percentage 12-2=10%
Profit amount till 01st July, 2022 = 10% of Rs. 3,00,000 = Rs. 30,000
Udit’s share of profit till 1st July, 2022= 30,000 X 4/8 = Rs. 15,000 (1+2=3 marks)

18. Profit and Loss Appropriation Account

Particulars Amount Particulars Amount

To Net Profit to Capital a/c: By Net Profit b/d 1,40,000

Pratap 70,000 -

1,000 69,000

Ravi 42,000 –

1,000
Shyam 28,000 + 41,000

2,000

30,000

1,40,000 1,40,000

(3)
OR

Analytical Statement of Adjustment

Particular Kashyap Bharadwaj Vishwamitra Total

s
Dr Cr Dr Cr Dr Cr

Profit 40,000 40,000 40,000 120,000

wrongly
given

Interest 10,800 9,600 8,400 (28,800)

on capital

Balance 34,200 34,200 22,800 (91,200)

profit

Total 40,000 45,000 40,000 43,800 40,000 31,200 Nil

Net adjt. 5,000 3,800 8,800

Journal Entries

Date Particul Lf [Link] [Link]

ars

2022 Vishwa 8,800

mitra
April 1 a/c 5,000
Dr 3,800
To
Kashya
p a/c

To
Bharad
 waj a/c

(being
the
rectificat
ion
entry
passed
or the
errors)

(2+1=3 marks)

19. Capital reserve Rs.40,000

[Link] Debentures-6,000

Journal entries-1.5 marks each (1.5 x2 =3 marks)

OR

Date Particulars LF Dr Amt Cr Amt

Plant A/c Dr. 4,00,000

Furniture A/c Dr. 3,00,000

Building A/c Dr. 4,00,000

Inventory A/c Dr. 3,00,000

To Sundry Creditors A/c

1,00,000
To P Ltd. A/c
12,00,000
To Capital Reserve A/c 1,00,000

(Being purchased running business

from P Ltd for Rs.12,00,000)

P Ltd A/c 12,00,000

To Equity Share Capital A/c 10,00,000

To Securities Premium A/c 2,00,000

 (Being purchase consideration paid

Issue of Equity Shares of Rs.10 at

Premium of Rs.2 per share)

(1.5 x 2 =3 marks)

20. Journal entry

C’s Capital Account Dr 26,667

To A’s Capital Account 26,667

Workings:
(i) Calculation of gaining ratio and sacrificing ratio:
A’s gain or sacrifice = 3/6-2/6= 1/6 (sacrifice)
B’s gain or sacrifice = 2/6-2/6 =0
C’s gain or sacrifice = 1/6 – 2/6 = -1/6 (gain)
(ii) Calculation of goodwill:

Year Profit/Loss Adjustments Normal Profit

31st March, 2019 50,000 50,000

31st March, 2020 1,20,000 1,20,000

31st March, 2021 1,80,000 1,80,000

31st March, 2022 (70,000) 50,000-10,000 (30,000)

Total 3,20,000

Goodwill =Average Profits X No. of years Purchase

Average Profits = Total Normal Profits/Number of years
= 3,20,000/4 = 80,000
Goodwill= 80,000 X 2= Rs.1,60,000
A’s share of goodwill= 1,60,000 X 1/6= Rs.26,667

(1 mark for Journal & 2 marks for working)

21. In the Books of Vishwas Ltd Balance sheet as at 1st April 2022

Particulars Note Amt(Rs)

 no

I EQUITY AND LIABILITIES

1) Shareholders fund

a) Share capital 1 6,77,000

Notes to Accounts

1 Share capital

Authorised share capital:

1,00,000 Equity shares of Rs 10 each 10,00,000

Issued share capital:

90,000 Equity shares of Rs 10 each 9,00,000

Subscribed share capital

85,000 shares of Rs 10 each 8,50,000

Subscribed but not fully paid up

84,500 shares of Rs 10 each, Rs 8 called up

6,76,000

Less calls in arrears(1000x2)

6,77,000
(2000)

Add forfeited shares(500x6)

3000

1 mk for Balance sheet , 3 mks for notes – 4 marks

22. Realisation A/c

Particulars Amount Particulars Amount

To Debtors 36,000 By Creditors 30,000

To Inventory 35,000 By Bills Payable 10,000

To Plant & Mach 20,000 By EPF 25,000

To Building 40,000 By Cash(Drs & 49,000

Inventory)

To Goodwill 10,000 By Ajay Capital 10,000

To Ajay Capital 10,000 By Vijay Capital 36,000

To Vijay Capital 24,000 By Loss Transferred

To Cash (EPF) 26,000 Ajay Capital 26,400

To Cash (exp) 3,000 Bijay Capital 17,600

2,04,000 2,04,000

4 marks

23.

Particulars LF Dr(Rs) Cr(Rs)

1. Bank a/c Dr 24,00,00
To Equity share application & allotment a/c 0 24,00,000

2. Share application & allotment a/c Dr 24,00,00

To share capital a/c 0 10,00,000
To Securities premium a/c 6,00,000
To Bank a/c 4,00,000
To share first and final call(calls in 4,00,000
advance)
3. Share first and final call a/c Dr 10,00,00
To share capital a/c 0 10,00,000
4. Bank a/c Dr 594000
Calls in advance a/c Dr 400000
To share first and final call 9,94000
 5. Share capital a/c Dr 20,000
To share forfeiture a/c 14000
To Call in arrears a/c 6000
6. Bank a/c Dr 14000
Share forfeiture a/c Dr 6000
To share capital a/c 20,000
7. Share forfeiture a/c Dr 8000
To capital reserve a/c 8000
(0.5+1.5+0.5+1+1+1+0.5= 6 marks)

OR

(a)

1. Share capital a/c Dr 12,000

To share forfeiture a/c 7,500
To first and final call a/c 4,500

2. Bank a/c Dr 5400

Share forfeiture a/c Dr 1800
To share capital a/c 7200
3. Share forfeiture a/c Dr 2700
To capital reserve a/c 2700

Calculation of Forfeited Share Account to be transferred to Capital Reserve:

Forfeited Shares for 1500 shares =
7,500
Forfeited shares for 900 shares = 7,500/1,500 x 900 =
Rs.4,500
Amount utilized towards difference in called up and
received
= 7,200-5,400 = Rs.1,800
Therefore amount to be transferred to capital reserve = 4,500 – 1,800
=Rs.2,700
 (1x3=3 marks)
(b)

1. Share capital a/c 35,000

Dr 25,000
To share forfeiture a/c 10,000
To Call in arrears a/c
2. Bank a/c 20,000
Dr 20.000
To share capital a/c

3. Share forfeiture a/c 10.000

Dr 10,000
To capital reserve a/c
(1x3=3 marks)
24. Revaluation account

Particulars Rs Particulars Rs

To Claim for damages 800 By creditors 500

To Provision for doubtful 250 By Loss transferred to

debts capital accounts-

B- 330

C-220
550

1050 1050

Capital accounts

Particulars B C D Particulars B C D

P/L a/c 6000 4000 Bal b/d 60,00 40,000

0
Revaluation 330 220 Cash a/c 30,000

Cash a/c 7500 Premium for 15,00

goodwill a/c 0

To cash a/c 1170 By cash a/c 24,220

Bal c/d 60,000 60,000 30,000

75,000 64,220 30,000 75,00 64,220 30,000

0

OR

Revaluation a/c

To Provision 2,000 By Building 20,000

To Machinery 10,000

To Profit transferred 8,000

A 4000
B 2000
C 2000
20,000 20,000

Partners’ capital account

Particular A B C Particular A B C
 By Balance 80,000 40,000 40,000

To B’s Cap 12,000 --- 6,000 By Gen Res. 10,000 5,000 5,000

To B’s Loan a/c - 65000 - By A’s cap ….. 12,000 …

To Balance c/d 82,000 41,000 By C’s Cap ….. 6,000 …

By 4,000 2,000 2,000

Revaluation

94,000 65,000 47,000 94,000 65,000 47,000

(2+4=6 marks)

25. Akbar’s Capital A/c

Particulars Amount Particulars Amount

To Drawings 12,000 By Balance b/d 50,000

To Interest on Drawings 600 By Interest on Capital 3,750

To Akbar’s By General Reserve 9,000

Executor’s Ac 85,150 By WCR 3,000

By Akshay Capital 24,000

By P& L Suspense 8,000

97,750 97,750

Akbar’s Executor’s Account

To Bank A/c 85,150 By Akbar Cap A/c 85,150

85,150

85,150

(5+1=6 marks)

26.(a).

a. Bank a/c Dr 55,00,000

55,00,000
To debenture application and allotment a/c

(Being debenture application received)

b. Debenture application and allotment a/c Dr 55,00,000

Loss on issue of debenture a/c Dr 10,00,000
To 9% debenture a/c 50,00,000
To premium on redemption of debenture 10,00,000
a/c 5,00,000
To security premium reserve a/c
(being debenture application transferred to
debenture account)

(b) Loss on issue of Debentures Account

Date Particulars Dr. Date Particulars Cr.

Amount Amount

2021 To premium on 10,00,000 2022 By Securities

redemption of debenture Premium A/C
Oct. 1 Mar 7,80,000
a/c
31 By Statement of P
&L A/c
 2,20,000

10,00,000 10,00,000

(c).

Date Particulars LF Dr Amt Cr Amt

2022 Debenture Interest A/c Dr. 2,25,000

Mar 31 To Debentureholders A/c 2,25,000

2022 Debentureholders A/c Dr. 2,25,000

Mar 31 To Bank 2,25,000

2022 Statement of P &L A/c Dr 2,25,000

Mar 31 To Debenture Interest A/c 2,25,000

(2+2+2 =6 marks)

27 (c) 2 times (1)

OR
(c) Postulates

[Link] current ratio will remain the same as there is no change in the current assets.(1)

29. (c) Cash Equivalents (1)

OR
(a) Financing Activity

30. (a) Only D (1)

31.
Item Major headings Sub-head

(i) Loose tools Current Assets Inventories

(ii) Long term Provisions Non – Current Long term Provisions

Liabilities

(iii) Provision for Warranties Non – Current Long term Provisions

 Liabilities

(iv) Income received in Current Other Current

advance
Liabilities Liabilities

(v) Capital Advances Current Assets Long Term Loan and

Advances

(vi) Advances recoverable Current Assets Short Term Loan and

in cash within the operation Advances
cycle

(0.5 marks for correct main and sub head)

32. Variations of Accounting Practice as Limitation is highlighted in the given

statement
Two Other Limitations (Any two of the following with suitable explanation)
(a) Limitations of Accounting Data
(b) Ignores Price-level Changes
(c) Ignore Qualitative or Non-monetary Aspects
(d) Forecasting (1+2=3 marks)

33. Inventory Turnover Ratio =Cost of revenue from operation

Average Inventory
6=
3,00,0
00

Av
er
ag
e
Inv
en
tor
y

Therefore, Average Inventory = 3,00,000/6

= Rs. 50,000
 Average Inventory = Opening Inventory + Closing Inventory

Let Opening
Inventory be
Rs. X
Average
Inventory =
X+X+
15,000
X=
50,000 x 2 –
15,000
2
X = Rs.42,500 = Opening Inventory
Therefore, Closing Inventory = Opening Inventory + 15,000
= 42,500 + 15,000

Opening Inventory = Rs.42,500 & Closing Inventory = Rs.57,500 (4marks)

OR

Return on Investment = EBIT / Capital Employed x 100

= 15,00,000/1,20,00,000 x 100 = 12.5%
Capital Employed = 12% Preference Share Capital + Equity Share Capital + Reserves
and
Surplus + 15% Debentures + 10% Bank Loan = 30,00,000 + 40,00,000 + 10,00,000 +
20,00,000 + 20,00,000 = ₹ 1,20,00,000
EBIT = Profits after Tax + Tax + Interest = 6,00,000 + 4,00,000 + 5,00,000 = ₹
15,00,000
Net Assets Turnover ratio = Revenue from Operations/Capital Employed
= 3,60,00,000/1,20,00,000 = 3 times (4marks)

34. Cash flow statement (AS-3)

Net profit 1,00,000

Add provision for depreciation 66,000
Provision for tax 50,000
2,16,000
Add non operating expenses and
non cash items-
Goodwill written off 72,000
Loss on sale of machinery 2000
Less non operating income -
Net profit before changes in the
working capital
Add Increase in CL -
Decrease in CA -
Less Decrease in CL(Trade (25000)
payable)
Increase in CA - Inventories (8000)
Trade receivable (27000)
Net profit before tax 230,000
Less tax paid (77000)
Cash generated from operating 1,53,000
activities(A)
Sale of Machinery 6000
Purchase of Machinery (294000)
Cash used from Investing (2,88,000)
activities(B)
Issue of shares 1,00,000
Long term borrowings raised 70,000
1,70,000
NET CASH FLOW(A+B+C) 35000
Add opening balance of cash 525000
equivalent(1,50,000+3,75,000)
Closing balance of cash
equivalent(2,40,000+3,20,000) 5,60,000
(4+1+1= 6 mks)
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